Catastrophe Insurance Development In Guangxi Province

The State Council issued "Several Opinions On Accelerating The Development Of Modern Insurance Services" in 2014. The opinions make specific requirements based on ten aspects of building insurance livelihood security net, a multi-level social security system and the others to accelerate the development of modern insurance services and the establishment of catastrophic insurance system are involved in the opinion. The opinion pointed out that the establishment of catastrophic insurance system. Around to improvement on people’s livelihood, setting-up of catastrophic insurance system should based on construction in system, platform on commercial insurance and protection on multi-level risk sharing. A multi-level catastrophic risk diversification mechanism supported by finance of government will gradually formed through study on the establishment of catastrophic insurance fund and reinsurance mechanism. Opinion stressed that an agreement of the county explored effective protection on those natural calamities contained typhoon, earthquake, landslide, debris flows, forest fires and other and formulate catastrophic insurance regulations, a nuclear catastrophic liability insurance reserve system and catastrophe risk management database.As the pilot, catastrophic insurance system successively operated in Shenzhen and Chuxiong in Yunnan province. This mechanism in China has transited from theory to practice. Looking for the suitable operation mode of catastrophic insurance is formed a common phenomenon in different regions of ChinaAs one of severe serious natural disaster regions, Guangxi province has influenced by these disasters not only in various types, high frequency and broad geographical distribution. Since 21 century, the loss cause by natural disasters every year can reach 10 billion RMB and will aggravate on the trend. In the face of such a huge disaster, rely on traditional compensation mechanism separately not only can’t make up for the losses and will bring consequences for the development on economy and society. Catastrophic insurance is a significant means for catastrophe risk transfer and economic consequences after the disaster economic loss compensation. At present, relatively mature foreign countries in insurance market already have set the effective mechanism according to their own truth and have achieved good results. In contrast, catastrophic insurance in Guangxi is in the initial steps and develop very slow that weak awareness in citizen individual risk, poor defense system on natural disaster, no effective emergency response mechanism, narrow channel on commercialization after disaster happen and commercial transfer way of loss in catastrophe, which means catastrophic insurance system has not to be established yet. Therefore, it is extremely argent that how to mobilize the commercial insurance and financial fund in state and district to spread catastrophic risk, establish and improve the system in Guangxi.